What's With My Credit Score?

WHAT'S WITH MY CREDIT SCORE? A credit score is a numerical expression based on a statistical analysis of a person's credit files. A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, TransUnion, and Equifax. However, there are many factors that can affect your credit score, some of which are completely out of your control. .HOW DO I MAKE IT BETTER? WHAT DETERMINES A CREDIT SCORE? BENEFITS OF A GOOD CREDIT SCORE • PAYMENT HISTORY Loan Approvals: RECENT SEARCHES 10% Good credit is the golden ticket to loan approvals. 10% 30% • TYPES OF CREDIT USED 15% Lower Interest Rates: Good payment history encourages lenders to lower interest rates. • LENGTH OF CREDIT HISTORY 35% • CREDIT UTILIZATION- Cheaper Insurance Premiums Bad credit checks increase Credits scores are used by lenders, creditors, landlords and even potential employers. This score is critical in determining a person's borrowing power and interest rates. The higher the score, the lower the potential credit risk. insurance premiums. DISTRIBUTION OF NATIONAL CREDIT SCORES: CREDIT SCORE CREDIT SCORE 850 13% LOW OR BAD 800 OK/FAIR 750 GOOD 2% 700 EXCELLENT 650 600 8% 550 500 450 400 12% 350 300 Avg. 692 27% 15% 18% CREDIT SCORES BY STATE: TOP 5 BOTTOM 5 850 Avg. 692 800 721 719 719 716 714 750 672 671 670 700 668 650 604 E 600 O 550 500 450 400 350 300 NEVADA OREGON MISSISSIPPI WHY IS MY CREDIT BAD? There are a number of factors that can give you a bad credit rating and make financing of any kind difficult, or at least, more expensive. Here are a few factors that will damage your credit score. POINTS REDUCED PER FACTOR: STARTING CREDIT SCORE: CARD BANKRUPTCY 720 -50 -30 -45 S -100 ...(-65 650 -80 (-110 (-105) -150 (-125 (-150 (-160 -200 -250 (-240 CREDIT CARDS AND CREDIT REPORTS Maxing out your credit cards is the easiest way to negatively effect your credit report. 1 in 7 people use more than 50% of their credit limit. These consumers also have at least 6.5 credit cards with debt and a credit score of 645; 47 points lower than the hational average. Avg. 645 1:7 EXTERNAL FACTORS: IDENTITY THEFT Identity theft and identity fraud are two of the fastest growing crimes in the United States. It is also a crime that can destroy your credit score. NUMBER OF PEOPLE AFFECTED: TOTAL FRAUD AMOUNT: 60 (11.1 54 57 58 12 /..60 9.9 10.1 48 50 9.3 45 8.9 8.1 8.4 --50 10 . 40 9 --20 .-10 2009 2008 2007 2006 2005 2004 2003 2009 2008 2007 2006 2005 2004 2003 CREDIT ERRORS Mistakes, omissions and small errors on your credit information could adversely effect your credit report. A recent survey asked adults from 30 states to order their credit report and complete questions on the reports accuracy. Listed False Delinquencies: Misspelled or Outdated Information: 25% (22% 50 100 Listed Mortgage Twice: 50 Other Serious Errors: 10 (54% 79% 50 100 50 10 HOW DO I FIX MY BAD CREDIT SCORE? (1 PAY BILLS ON TIME: Payments that are 30 or more days late have a negative effect on your credit. REQUEST A LOWER LIMIT: Request in writing that your creditors reduce your credit limits. (3 REDUCE YOUR CREDIT CARDS: When possible, pay in cash. Avoid building up more debt on credit cards. GET A SECURED CREDIT CARD: A secured credit card can reestablish your credit 5 AVOID BANKRUPTCY: ANNUAL CREDIT REPORT: Bankruptcy stays on your credit report for up to 10 years. Looking at your credit report once a year can catch errors. Sources: US PIRG I Equifax Experian I Buzzle FICO I 2010 Identity Fraud Survey Report credit sesame BY: www.creditsesame.com CREDIT SCORE MINNESOTA S. DAKOTA N. DAKOTA VERMONT IOWA MAXED-OUT LATE PAYMENT GEORGIA TEXAS DEBT SETTLEMENT FORECLOSURE MILLION PEOPLE BILLIONS USD